The salary of a worker is firstly increased by 50 percent and thereafter reduced by 30 percent. What is the net change in the salary?
Show answer & explanation
Correct answer: B
Explanation
Given:
First increase = 50%
Second decrease = 30%
According to the formula:
New Salary = Initial Salary × (1 + 50%) × (1 − 30%)
Assume Initial Salary = 100
After the first increase = 100 × 1.5 = 150
After the second decrease = 150 × 0.7 = 105
Total change = 105 − 100 = 5% increase